Latin America Economic Forecast

Economic Snapshot for Latin America

October 13, 2021

Regional economy to soften in 2022

The pace of growth in the regional economy will soften considerably next year, on a waning base effect and as domestic and foreign demand receive less support as fiscal and monetary policy stances are gradually tightened. The uncertain evolution of the pandemic and policy shifts following elections in several of the region’s big players are key factors to watch.

Inflation to ease in 2022

Regional inflation came in at 11.2% in September (August: 10.7%), as price pressures intensified in Brazil, Colombia, Mexico, Paraguay and Peru amid faster price increases for food and transport. Next year, inflation should ease on tighter monetary policy stances, although it will remain elevated. Protracted supply disruptions and high energy prices represent upside risks.


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Latin America Economic News

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